Setup the SOV Terms

Modified on Tue, 29 Oct at 5:16 AM

The general contractor is responsible for configuring the SOV terms for each project. They can set up the following:

Frequency – Governs the time interval at which the successive SOVs are generated, for example, monthly. The GC also specifies the date/day to trigger the SOV auto-generation, for example, the 5th of every month.
Retainage – The percentage of money to be deducted from the total money value of the current SOV by the payer. The retainage money is accumulated with the payer and released on completion of the project. The retainage is for the GC/owner to have a hold on the paid party to ensure that they complete their work on time and correctly.

Once set, the terms are communicated to the contractors for their acceptance. The SOV autogeneration will apply only to the contractors who have accepted the terms. The contractor can:

Accept the terms. Once accepted, the terms cannot be changed throughout the lifecycle of the project.
Raise a dispute. If a contractor disagrees with the SOV terms, they can negotiate with the general contractor through any communication method, for example, using the built-in chat feature in the project management console. The GC can edit the terms for the contractor to accept. The revised terms will be available for the rest of the contractors who are yet to accept them till there is a next revision.

Roles and Permissions:
Only the users with the 'Configure' enabled for the 'SOV' module can set up the SOV terms for a project.

Configure the SOV terms

Select the project from the portfolio screen to open its management console.
Click 'SOV' on the top.
Select 'Configure' from the options on the left

The table shows the list of subcontractors and the SOV terms set for them.

Click the 'SOV Terms' button at the top right

Enter the parameters:
- Retainage value - Enter the amount to be deducted and held at each billing cycle as the percentage of the total amount
- SOV run day every month - Double-click in the field and select the date to generate the SOV draft for the contractors covering that billing period.
Click 'Save' for your configuration to take effect

The configuration is auto-accepted for the general contractor and communicated to the subcontractors.

The subcontractors get notified to review and accept the SOV terms. They can accept the terms or negotiate with you for a revision.

You can revise the configuration any number of times until all subcontractors agree to the terms. For every change, the revised configuration will only be available to the contractors who have yet to accept it and will not take effect on the contractors who have already accepted it. This enables you to set up different configurations for different contractors.

Revise the SOV configuration

Select the project from the portfolio screen to open its management console
Click 'SOV' on the top
Select 'Configure' from the options on the left

Click the 'Edit SOV Terms' button

Change the values as required and click 'Save' for your changes to take effect

The new terms are informed to the contractors who did not accept the previous configuration.